Litecoin price has been on a downtrend for two months now as fear remains the key emotion driving the crypto market. The crypto fear & greed index is currently at an extreme fear level of 21. In the past month, fear levels were lower at 27. However, since last week, the market has been grappling with extreme fear.
After dropping to its lowest level in six months on Monday, LTC has rebounded by 7.26%. At the time of writing, it was up by 2.51% at 129.70.
Nonetheless, it is still on a downtrend as has been the case since mid-November when it hit a six-month high at 302.81. Over a span of two months, Litecoin price has plunged by about 56.95%.
On a four-hour chart, it is trading below the 25 and 50-day exponential moving averages. It is also below the long-term 200-day EMA; an aspect that substantiates the bearish outlook.
For five consecutive sessions, it has been trading within a horizontal channel with Monday’s low of 120.73 and the 50-day EMA at 135.37 as the range’s lower and upper borders respectively. In the ensuing sessions, the aforementioned range will be one to look out for.
A move below the range’s lower border will give the bears an opportunity to retest July 2021’s low of 104.38. On the flip side, Litecoin price may rebound past the resistance level of 135.37 to the support-turn-resistance zone of 141.22.
However, the crypto has remained below the 200-day EMA since the beginning of December last year. Based on both the techncials and fundamentals, the psychologically crucial zone of 150 may remain evasive in the short term.
This post was last modified on Jan 11, 2022, 08:42 GMT 08:42